Uttar Pradesh Joins “Uday” Scheme of Centre. UDAY is an aim to ensure a permanent solution to the debt-ridden Distribution utilities to achieve financial stability and to improve their operational efficiencies, for sustained growth. Uttar Pradesh is expected to derive an overall net enefit of Rs.33000 Crore.
Rajasthan, Chhattisgarh and Jharkhand have already signed the MoU under UDAY.
The Distribution Utilities of the country are reeling under heavy debt burden. As on 30th September, 2015, the outstanding debt of the DISCOMs stood at Rs.4.3 lakh crore. In order to bring relief to these Utilities from the burden of debt, and to improve their overall performance, Government of India launched the Scheme UDAY on 20th November, 2015, after a series of discussions with all the stakeholders, namely the State Governments, DISCOMs, lenders etc.
The Government of Uttar Pradesh has decided to take over Rs.39900 crore. of DISCOM debt, being 75% of the total DISCOM debt of Rs.53200 crore as envisaged in the scheme. The scheme also provides for the balance debt of Rs.13300 crore to be re-priced or issued as State guaranteed DISCOM bonds, at coupon rates around 3% less than the average existing interest rate. The annual saving in the interest cost to the DISCOMs would be around Rs.1600 crore. on account of State take-over of debt and reduction in interest rates on the balance debt.
Besides helping the DISCOMs to bring about financial turnaround, UDAY lays stress on improving operational efficiencies of the DISCOMs. During the period of turnaround, the State of Uttar Pradesh and the DISCOMs will bring about operational efficiency through compulsory Feeder and Distribution Transformer metering, consumer indexing & GIS mapping of losses, upgrade/change transformers, meters etc., smart metering of high-end consumers, thereby bringing about reductionh in transmission losses and AT&C losses, besides eliminating the gap between cost of supply of power and realisation. The reduction in AT&C losses and transmission losses to 15% and 3.95% respectively is likely to bring additional revenue of around Rs.17700 crore. during the period of turnaround.
With the financial turnaround through financial and operational efficiencies, the rating of the DISCOMs would improve, which would help them in raising cheaper funds for their future capital investment requirement. This is expected to provide interest cost saving of around Rs.200 crore. to the DISCOMs.
Energy Efficiency is also one of the focus areas of UDAY. In order to help reduce the peak load and reduce energy consumption the State of Uttar Pradesh, the State Government and the DISCOMs would promote usage of energy-efficient LED bulbs, agricultural pumps, fans & air-conditioners, efficient industrial equipment through PAT (Perform, Achieve, Trade) etc. The saving is expected to be around Rs.3500 crore.
The ultimate benefit of signing the MOU would go to the people & industries of Uttar Pradesh. Higher demand for power from DISCOMs would mean higher PLF of Generating units and therefore, lesser cost per unit of electricity thereby benefitting consumers. The DISCOMs would also increase power supply in areas with reduced AT&C losses. The scheme would allow speedy availability of power to around 490 villages and 143.54 lakh households in Uttar Pradesh that are still without electricity. Availability of 24×7 power to hitherto unconnected villages/households etc. would boost the economy, promote industries, thereby improving employment opportunities and see Uttar Pradesh develop into one of the leading industrialised States in India.